AG urged to tackle rent reviews
Monday, April 04, 2011
ONE of the main representative bodies for the retail industry has called on new Attorney General, Maire Whelan, to tackle the ongoing issue of commercial rent rates by introducing legislation ending upward-only rent reviews for existing leases.
"The new Attorney General should, as an immediate priority, review this decision, with a view to introducing new legislation to remove these clauses from existing leases. Apologists for upward-only rent reviews are unwilling to contemplate solutions. They fail to grasp that Ireland’s economy would be best served by managed rent reductions, rather than the closure of perfectly good retail businesses with the consequent unemployment for staff, bankruptcies of owners and losses for creditors."
Mr Denihan added that "a major adjustment" throughout the economy via prices, pay rates and social welfare payments is underway resulting in "a painful process" and that commercial rents need to be added to this list.
"Landlords should participate in this adjustment, too. Unless this is done, jobs will be lost and otherwise viable businesses will have to close," he added.